BUAD 310 Application Exercise 8 Section Number/Time: _____________ Team Member Information: No. Name USC ID 1 2 3 4 5 Page 1 of 4 Viewing Habits and Age With the proliferation of devices, such as smart phones and tablets, that provide access to the Internet, many corporations are faced with the challenge of deciding how to allocate their advertising dollars across the different viewing platforms. One question they are grappling with is whether Broadcast TV is the most effective platform for advertising their products and service, or whether they should substitute to other platforms, particularly since some have argued that younger people do not watch TV as much. However, other sociologist have argued that the younger generation is not substituting away from traditional TV but multi-tasking – that is watching or using multiple devices are the same time. The following question was part of a random survey of over 1000 respondents to examine this issue. How often do you access the Internet on any device at the same time you watch television? Include any type of Internet usage such as checking your email, surfing the Web, chatting, reading, watching online materials, etc. 1 2 3 4 5 I access the Internet very often at the same time I watch TV, about 75% of the time or more I access the Internet often at the same time I watch TV, about 50%-75% of the time I sometimes access the Internet at the same time I watch TV, about 10%-50% of the time I rarely access the Internet at the same time I watch TV, about 1%-10% of the time I never access the Internet at the same time I watch TV The respondent’s age was also collected in the survey, and the results of these two questions are recorded in the excel file, viewing.xlsx. The bar chart below shows the results of the survey, and plots survey respondents’ age against and how often they access the Internet while watching TV. What are the possible reasons that a significant number of people over 65 do not watch TV and access the Internet as the same time? Circle the reasonable reason(s). (3 points) 1. a. Many people over 65 are less comfortable with using computers and the Internet b. People over 65 years belong to the generation that believe watching TV should not be mixed with other activities c. Most people over 65 are less likely to have laptops, tablets, smart-phones or other wireless devices that would allow them to watch TV and surf the Internet at the same time d. Both (a) and (c) e. All of the above 90 80 70 60 Very Often 50 Often Sometimes 40 Rarely 30 Never 20 10 0 13-14 15-17 18-24 25-34 35-44 45-54 55-64 Above 65 Page 2 of 4 2. Using Excel, generate the contingency table for Age and Viewing Habits. Fill in the table below: (5 points) Age 13-14 1 15-17 2 18-24 3 25-34 4 35-44 5 45-54 6 55-64 7 Above 65 8 Very Often Often Sometimes Rarely Never 1 2 3 4 5 3. To test for independence between age and viewing habits, using the chi-squared test, it is necessary to generate the expected values or counts. Using Excel, generate the “hypothetical” contingency table and fill in the values below. Round your answers to a whole number. (5 points) Expected Values: Age 13-14 1 15-17 2 18-24 3 25-34 4 35-44 5 45-54 6 55-64 7 Above 65 8 Very Often Often Sometimes Rarely Never 1 2 3 4 5 Page 3 of 4 4. State appropriate null and alternative hypothesis for the Chi-Squared test (2 points) H0 ________________________________________________________________ Ha _________________________________________________________________ 5. What is the appropriate degrees of freedom for this chi-squared test? (2 points) 6. Using Excel, generate the p-value of the chi-squared test statistics, Χ2. What is the p-value? Explicitly state the Excel command and the inputs. (4 points). 7. Testing at α= 0.05, can you conclude that age and Viewing habits are independent? (2 points) 8. Based on your findings, what recommendations can you make to companies, on whether they should substitute their advertisements away from TV to the Internet (2 points)? Page 4 of 4